The yen may fall below 150 against the US dollar, and investors are bearish on the yen

"Sell the yen" is becoming an increasingly popular battle cry as investors prepare for monthly U.S. inflation data. Traders reduced their bets on a rate cut by the Federal Reserve, boosting the dollar and U.S. Treasury yields, and Japan's largest banks are almost unanimous in their view that the yen will continue to weaken.

Nick Twidale, chief analyst at ATFX Global Markets in Sydney, said "sell yen" is the most popular trade and carry trades still apply to hedge funds that short the yen. Mizuho Securities, Nomura Securities and Mitsubishi UFJ Securities, among others, said the yen could fall to 150 or lower against the dollar, raising the threat of another intervention by Japanese authorities. The yen has fallen 4.6% in the past month, which has put Japanese officials and yen traders on high alert.